ETF Education Report: Calamos Global Dynamic Income Fund (CHW)

What this ETF is trying to do

The Calamos Global Dynamic Income Fund (CHW) is an exchange-traded fund (ETF) listed on the NASDAQ. While the specific investment strategy is not detailed in the data, this type of fund generally focuses on providing income to its investors.

What the numbers show

When looking at an ETF, it is important to understand two different types of returns: price return and total return.

• Price Return: This measures only the change in the share price.

• Total Return: This includes both the share price change AND any cash distributions (dividends) paid out to investors.

For CHW, the numbers show growth in both areas:

• Year-to-Date (YTD): The price return is approximately 11.20%, while the total return is higher at approximately 17.07%.

• One Year: The price return was approximately 8.99%, and the total return was approximately 17.86%.

• Three Years: The price return was approximately 44.31%, while the total return was much higher at approximately 87.28%.

To visualize the price change, we can look at an estimated price from roughly one year ago. The estimated price was $7.56, and the current price is $8.24.

Income and distribution explanation

This ETF provides cash to investors through distributions. The distribution yield is approximately 7.65%. This number describes the cash paid out relative to the ETF's price.

The fund usually pays these distributions monthly, with a total of 12 payments over the last year. Based on the data, these payments often occur on Fridays. It is important to remember that a high distribution yield does not guarantee the same level of total return, and distributions are separate from the growth of the share price.

NAV erosion explanation

"NAV erosion" is a term used to describe when the value of the underlying assets in a fund decreases significantly over time. Some investors worry that high payouts might cause this. However, for CHW, the erosion-risk score is 100, which is labeled as "No price erosion detected." There is no severe erosion-risk flag for this fund.

Pros

• The fund has shown positive price returns over the last year and three years.

• The total return is significantly higher than the price return, meaning distributions have added value.

• It has a high income rating grade of "A."

Cons

• The data provided does not list any specific Top Holdings, so the exact companies owned by the fund are unknown from this report.

Beginner takeaway

When studying CHW, notice the difference between price return and total return. Because this fund pays regular distributions, the total return (which includes those payments) is higher than the price return alone. Always remember that a high distribution yield is one part of the story, and looking at total return provides a more complete picture of how the fund has performed.